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Goldman Sachs swung to a third-quarter loss as stiff markdowns in the value of its massive lending and investing portfolio forced the investment bank to turn in only its second quarter in the red since its 1999 initial public offering.

Like its peers, Goldman found revenue-generating opportunities to be scarce in the third quarter as choppy markets sidelined clients. Investment banking revenue slumped 33% from a year ago, adding to a disappointing capital markets performance seen across the Street during the period.

"CEO and investor confidence as well as asset prices across markets were lower in the third quarter given the uncertain macroeconomic and market conditions. Our results were significantly impacted by the environment and we were disappointed to record a loss in the quarter," said chief executive Lloyd C Blankfein.

On the trading front, Goldman said fixed income, currency and commodity revenue--once a reliable profit-generator for the investment bank--fell 36%, building on a 37% decline posted in the segment a year earlier.

Goldman posted a loss of $393m, compared with a year-earlier profit of $1.9bn. On a per-share basis, which includes payment of preferred dividends, the investment bank posted a loss of 84 cents a share compared with earnings of $2.98 a share a year earlier.

The latest results include a loss of $1.05bn from the firm's investment in the ordinary shares of Industrial and Commercial Bank of China, net losses of $1bn from other investments in equities, as well as net losses of $907m from debt securities and loans.

Net revenue slid 60% to $3.59bn. Analysts polled by Thomson Reuters expected a loss of 16 cents a share on $4.3bn in revenue.
Shares were recently down 2% to $95 in premarket trading. The stock is down 42% since the start of the year.